The appellants appealed a trial decision dismissing their application for a declaration that the insured was dead under section 208 of the Insurance Act.
The trial judge had relied on hearsay evidence from an investigator regarding statements made by the insured's sister, which suggested the insured had planned to fake his death.
The Divisional Court found that the trial judge committed a palpable and overriding error by using this hearsay evidence for a truth purpose without properly applying the principled approach to hearsay.
The appeal was allowed and a new trial was ordered.
